Will Nifty continue the winning streak to scale past 20900- 8 things to know before the share market opens

Will Nifty continue the winning streak to scale past 20900? 8 things to know before the share market opens

GIFT Nifty traded up 40.5 points or 0.19% at 21,040, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 advanced 168.50 points or 0.81% to settle at a record high of 20,855.10, while the BSE Sensex jumped 431.02 points or 0.63% to 69,296.14.

“Markets edged higher for yet another session and gained nearly a percent, in continuation of the prevailing up move. After the initial surge, Nifty remained in a range for most of the session and settled around the day’s high at 20,855.10 levels. Meanwhile, a mixed trend on the sectoral front kept the traders occupied wherein energy, metal and banking were among the top performers. The broader indices too traded in sync and ended with modest gains,” said Ajit Mishra, SVP – Technical Research, Religare Broking.

Key things to know before share market opens on December 6, 2023Wall Street

Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the US Federal Reserve will cut interest rates as soon as March, reported Reuters. The tech-heavy Nasdaq Composite advanced 0.31% to settle at 14,229.91, while the S&P 500 fell 0.06% to 4,567.18, and the Dow Jones Industrial Average slipped 0.22% to 36,124.56.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.09% at 103.95.

Crude Oil

WTI crude prices are trading at $72.39 up 0.11%, while Brent crude prices are trading at $77.37 up 0.22%, on Wednesday morning.

Asian Markets

Shares in the Asia-Pacific region are trading in the green on Wednesday morning. The Asia Dow is trading up 0.97%, Hong Kong’s Hang Seng index is trading up 0.29%, and Japan’s Nikkei 225 is up 1.55%, while the benchmark Chinese index Shanghai Composite is down 0.14%.

FII, DII Data

Foreign institutional investors (FII) purchased shares worth net Rs 5,223.51 crore, while domestic institutional investors (DII) sold shares worth net Rs 1,399.18 crore on December 5, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Delta Corp, Indiabulls Housing Finance, India Cements and Zee Entertainment to its F&O ban list for December 6, 2023.

Technical View

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said,” The Nifty opened again with a gap and after the initial bout of volatility, it stabilized and witnessed a steady rise towards the closing to close around the highs for the day. It closed up 168 points. On the daily charts, we can observe a long lower shadow indicating that there is buying interest at lower levels around the zone of 20,720 – 20,700. The hourly momentum indicator has triggered a negative crossover which is a sign of loss of momentum on the upside however, until prices show evidence of a correction, we shall continue to ride the up move with a trailing stoploss mechanism. On the upside 21,000 – 21,060 shall act as an immediate hurdle zone and 20,720 – 20,700 shall act as a crucial support zone and should also be kept as a trailing stoploss for the longs on the index.”

Bank Nifty Outlook

Bank Nifty index rallied 580.85 points or 1.25% to settle at 47,012.25 on Wednesday. “The Bank Nifty index maintained its robust buying momentum, although it formed a doji candle on the daily chart, suggesting a potential pause in the uptrend. A decisive breakout above 47,100, sustained over time, could propel the index toward 47,500 levels, indicating further upward momentum. The lower-end support has shifted to 46,400, serving as a crucial cushion for the bulls in case of any retracement,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.